DeFi

On international remittances:

Every year, people send $600B+ in international remittances; or money sent from once country to another, either by an individual, business, or government. 

Remittances operate in an outdated way. A roughly 6% fee. Can stablecoins move the needle forward? 👇🏼

The 6% goes to intermediaries and off-ramping. We can reduce the intermediary fee but the off ramping (which is a significant part) does not go away.

It is mostly due to fx happening through ‘authorised dealers’ (or banks) who have no incentive to reduce it. Also, most of these currencies are not freely convertible like the USD so hedging costs are quite high as well, which factors into the cost.

Do you think off ramping fees are temporary until acceptance for the transferred asset is accepted at scale? 

6% feels absurd.